Geospace Could Become $65 Stock In Four Years

Geospace Technologies Corporation
could become a $65 stock in the next four years, Reverend Emmanuel Lemelson said on Benzinga PreMarket Prep. Houston-based Geospace makes seismic equipment used in the exploration and production industry. Lemelson's Amnova Fund has been accumulating Geospace shares for the past 18 months and currently owns 1.03 million shares, or 7.8 percent of the company's outstanding shares. "Even if it take four years for Geospace to revert to median price- to-book value (2.7-2.8 times its tangible book), it will be a $65 stock," Lemelson said on the show. In a recent letter to investors, the hedge fund manager who is an Orthodox priest, said he plans to keep buying shares for the next four or five months and "hopefully we'll get 10 percent of the company." Lemelson said Geospace is well positioned for a recovery in oil prices as he feels E&P has to resume for stable energy markets. "The supply demand equation is very close" and noted that the disruptions at Libya Nigeria and Canada will take away 2 million barrels of production per day. Lemelson added that business cycle will normalize once oil firms start replacing their reserves. Shares of Geospace rose 3.01 percent to $17.44.
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